The Fuel Cell & Hydrogen Energy Association (FCHEA), joined by 54 companies and organizations across the hydrogen landscape, calls on the Department of Treasury to implement the Section 45V Credit for the Production of Clean Hydrogen enacted by the Inflation Reduction Act (IRA) without additionality requirements.
In a letter issued today, the signatory organizations advocate that in order to increase hydrogen’s accessibility and deployment throughout the United States, the Treasury Department’s lifecycle analysis calculation for clean hydrogen must include the use of market-based mechanisms such as renewable energy credits (RECs), power purchase agreements (PPAs) or energy attribute certificates (EACs), without any additionality restrictions.
The letter warns that additionality – a requirement that clean hydrogen production facilities must only be supplied with electricity from new clean energy projects – will increase costs, risk job loss, delay project construction, and hold back the growth of the U.S. hydrogen industry, ultimately undermining our nation’s decarbonization efforts.
“The passage of the IRA was an important step forward in the growth of American hydrogen and it is critical that we do not lose momentum now by implementing detrimental restrictions,” said FCHEA President & CEO Frank Wolak. “We all share the same goal: increasing the deployment of clean energy. Hydrogen’s versatility and reliability make it an essential component of decarbonizing some of our hardest-to-abate sectors. In order to fully realize these benefits and deliver on the IRA’s intended goal, hydrogen must be treated equitably and optimized with accessibility and deployment in mind.
“FCHEA looks forward to continuing its work with the Administration on developing the necessary policy tools to advance the U.S. hydrogen sector for the good of our environment, economy, and workforce.”